Strong Growth Predicted for US Economy in 2021

Economic growth in the United States is forecast to surge by as much as 10% in the second quarter, as millions of Americans get vaccinated each day and more businesses re-open. This would be the biggest rate of increase in Gross Domestic Product (GDP) since 1984. The median forecast by economists is 9.3% GDP growth during April, May and June 2021, however, a top researcher at Bank of America says the US economy could even grow by as much as 10 percent. Other economists think these forecasts could be an underestimate of just how strong the American economy will grow during Q2. Consumer spending accounts for a large percentage of economic activity in the United States and it is estimated that consumers accumulated about $3.5 trillion in extra savings during the pandemic above what they would normally save. As the the vaccinations advance and the weather gets warmer, it is believed that American consumers are going to stimulate the economy by dining in restaurants, shopping in stores, taking vacations, and other spending activities that they were not able to do during 2020. One chief economist said that strong consumer spending in the USA is likely to continue into 2022. To read more, click here!